Direct loans to the Ministry of Finance of Ukraine

For 1992-1995 provided direct loans to the Ministry of Finance of $ 3.3 trillion. rubles, or 69.9% of the total non-cash issue of the National Bank with 17.5% of non-cash issue, aimed at the commercial bank lending, and 12.5% ​​- for purchase of foreign currency. In 1992 began the establishment of official foreign reserves of the National Bank of Ukraine, and the first intervention in the foreign exchange market, the National Bank carried out in 1993 in the amount of 930 billion rubles. Generalized sum of non-cash issue of the relevant periods are reflected. The second phase (1996-1999) of monetary policy in Ukraine related to the conduct of monetary reform and the beginning of its formation based on a market-based regulation of money market funds. Government and National Bank of Ukraine proceeded from the fact that on the eve of reform in cash circulation is a significant amount of money - 338 trillion. rubles, which was not fully cover the real in the form of stock (they had only a $ 157 trillion. rubles). and could not be maintained at the expense of foreign exchange reserves through their insufficient amount. According to specialists, confiscatory reform option would have negative consequences - namely, inflation at 50 percent per month for complete emptying shelves. This should be devastating not only for the stability of the currency, but also for the economy as a whole. Consequently, it can be concluded that the issuance of national currency hryvnia has provided the termination of formation of the monetary system of Ukraine. The full-blooded treatment introduced currency, which became one of the attributes of statehood, and tools for managing the economy. Topic: A PRACTICAL ANALYSIS OF MONETARY ISSUE | Tags: credit